What is ‘Investment’?
In any form of betting, ‘investment’ describes the amount put in by a player, with the expectation of receiving an increased return. Gambling shares many similarities with stock market trading – investment is the outlay, and the return on investment is any profit made above the cost of that outlay.
If a gambler talks about their ‘investment’, they are referring to the money they staked against an outcome, in the hope of receiving a return. For example, a player ‘invests’ or bets $1 on a 10-1 chance, and wins. The $11 return represents $10 of profit and their $1 investment returned to them.
Gambling and investing bear similarities in nature and many of the terms used in both fields will overlap closely. Investment is one such term which appears in trading and in gambling. It means how much a player paid out towards a bet, and is often compared with the return they made from that investment.
By investment, a gambler usually means how much they had to pay in order to receive a return. They might use the phrase to refer to a poker buy-in of $100, for example.
Usually when a player talks about their investment, they are implying that they won their bets and made a profit. In poker, a player’s ‘investment’ is their portion of any particular pot. If a player has contributed a lot to the pot, they may be more likely to stay in and protect their investment. Players will often judge their odds of success against the price of their investment so far, and calculate the risk of staying versus the potential payoff if their hand is able to win the game.
Not all people will consider gambling as real investing, as walking into a casino to play at the tables, or placing a bet on a horse implies a much greater level of risk than traditional financial investments.